The Reserve Bank of Australia (RBA) is currently prioritizing research in three key areas, namely inflation dynamics, the economy's supply capacity, and the effects of monetary policy changes on the economy, Assistant Governor Sarah Hunter of the RBA said on Thursday.

Hunter noted that forecasting inflation has been unusually difficult, with recent data stronger than expected, and that the RBA is using Australian Bureau of Statistics microdata to see if firms have changed how they set prices and margins since the pandemic.

She said that the RBA sees the labor market as still somewhat tight and is examining factors such as rising workforce participation among women and older workers, the impact of easing cost-of-living pressures on hours worked, and how well jobseekers' skills match employers' needs.

She added that the RBA is examining how interest rate changes affect the economy, noting that housing has rebounded more strongly than expected, with implications for inflation and the labor market.

The assistant governor said the issues mentioned provide only a glimpse of the RBA's wider research, as economists explore how the economy is evolving beneath the surface and the policy implications.